Behind every Formula 1 team lies a business that needs to generate a profit by the end of the year. Some are backed by car manufacturers, like Scuderia Ferrari or Alpine F1 Team. But what is the value of an F1 team?
If you’ve ever wondered how much Ferrari or Mercedes F1 teams are worth, you’re in the right place. Let’s break it all down.
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How can an F1 team be profitable?
Like any company, evaluating an F1 team requires looking at its profitability. Broadly speaking, there are two categories of revenue:
- First, there are commercial revenues from merchandise sales (like driver-branded caps or t-shirts) or marketing partnerships, such as the collaboration between LEGO and Formula 1.
- Second, there are sporting revenues, which come from the cash prizes awarded by Liberty Media, the company owner of Formula 1 at the end of the season to reward the teams. The higher you finish in the standings, the more money you earn. We’re talking about tens of millions of dollars up for grabs every year.
Each team has expenses, including salaries, logistics, and the development and construction of an F1 car. The more they earn and the less they spend, the more profitable they are. Beyond profitability, F1 teams benefit from international recognition and prestige linked to their historical achievements, which make them more desirable and, therefore, increase their value.
What is the valuation of F1 teams?
The valuation of an F1 team also depends on the value of its infrastructure. Haas F1 Team is the least valuable team on the grid, at “only” $1.02 billion. This is due to its relatively recent entry into Formula 1, limited resources, and modest results on the track.
Higher up, there’s Williams, valued at $1.24 billion, which benefits from a much longer history. Alpine F1 Team is valued at $1.5 billion, the lowest valuation for a team backed by a car manufacturer. Finally, Scuderia Ferrari is estimated to be worth $4.78 billion, making it the most expensive team in 2024. Here’s the full ranking:
- Ferrari: $4.79 B
- Mercedes: $3.94 B
- Red Bull: $3.5 B
- McLaren: $2.65 B
- Aston Martin: $2.07 B
- Alpine: $1.5 B
- Williams: $1.24 B
- Racing Bulls: $1.22 B
- Stake/Sauber: $1.2 B
- Haas: $1.02 B
After 15 years of failures, Ferrari is on the verge of starting a new era of domination in Formula 1
2024 valuations rise compared to 2023
On average, the 10 F1 teams have seen their valuations increase by 52% compared to 2023, the total value of the F1 grid was around $15,2 billion. The record holder is Aston Martin F1 Team, which jumped from $1.14 billion to $2.07 billion — an 82% increase. That’s huge. What could explain such a trend?
- First, rising commercial performance. Formula 1 continues to attract more viewers, translating to more potential customers.
- Second, teams have heavily invested in themselves in recent years, building new factories and state-of-the-art infrastructure.
All of this adds to the company’s assets and, therefore, its value. If you ask me, these prices are not going to stop rising anytime soon!
This article explores the worth of Formula 1 teams in 2024 and how to estimate the price of a team. It also highlights the increase in valuations compared to 2023.
Source: Sportico
